Legal Guide to Fraud Prevention and Response

1. Legal Definition of Fraud

Fraud refers to the intentional use of false representations, concealment of material facts, or other deceptive practices to unlawfully obtain property or benefits from others. Key elements include:

• Misrepresentation or concealment
• Intent to deceive
• Victim’s reliance on the deception
• Resulting financial harm or damages

2. Common Types of Fraud & Examples

Type	Example	Legal Consequences
Telecom Scams	Impersonating officials to demand wire transfers	May constitute criminal fraud
Financial Fraud	Credit card skimming, fake loan schemes	Potential felony charges
Online Scams	Fake e-commerce sites, phishing links	Civil liability possible
Investment Fraud	Ponzi schemes, fake investment opportunities	May violate securities laws
Insurance Fraud	Staging accidents for claims	Insurers may deny coverage & pursue legal action

3. Legal Remedies for Fraud Victims

① Criminal Complaint

• File a police report with evidence
• Request investigation & prosecution
• Possible restitution if case is solved

② Civil Lawsuit

• Sue for damages in court
• Must prove losses & defendant’s fault
• Burden of proof on plaintiff

③ Regulatory Complaints

• Report to oversight agencies (e.g., SEC, FTC)
• May trigger fines or license revocation

4. Critical Evidence Checklist

• ✔️ Communications (texts/emails/screenshots)
• ✔️ Transaction records (bank statements, receipts)
• ✔️ Witness contacts
• ✔️ Notarized web archives
• ✔️ Police report copies

5. Fraud Prevention Tips

• 🔹 Verify identities (request official documents)
• 🔹 Beware of “guaranteed high returns”
• 🔹 Never share passwords/OTP codes
• 🔹 Use authorized payment channels
• 🔹 Monitor credit reports annually

6. Key Legal Notes

• ❗️ Fraud may violate both criminal & civil laws
• ❗️ Civil claims typically have a 3-year statute of limitations
• ❗️ Major fraud cases can lead to felony charges
• ❗️ Evidence preservation is crucial for recovery

For Case-Specific Help: Consult a fraud attorney with complete documentation. For high-value or cross-border fraud, seek legal counsel immediately to explore recovery options.